EFTA Document EFTA01458957

8 December 2015 World Outlook 2016: Managing with less liquidity Asset allocation: 2016 Outlook: The Case for normalization Our global asset allocation strategists discuss several key themes and catalysts for the year ahead: First, rate normalization cycles have always been associated with significant price losses on 10-year Treasury securities. Second, although credit spreads tend to tighten with higher rates, the over-allocation to credit - especially high grade - tends to keep credit v